Africa Set to Test Critical Minerals-Backed Currency

JOHANNESBURG—Major countries and regional blocs in Africa are throwing their weight behind an ambitious plan to establish a “non-circulating” currency backed by critical minerals, which are crucial to technological development, defense, and economic growth.

Analysts say a denomination based on commodities could reduce Africa’s reliance on foreign currencies—especially the U.S. dollar—and decrease its dependence on loans from China, Europe, the United States, and global financial institutions like the World Bank.